TotalEnergies says Q1 LNG earnings, sales down

France’s TotalEnergies said on Thursday that the company’s integrated LNG business logged a drop in its adjusted net operating in the first quarter of this year due to lower prices.

The company’s integrated LNG adjusted net income reached about $2.07 billion, a drop of 25 percent when compared to the first quarter in 2022 and down by 10 percent when compared to the previous quarter.

In 2022, the company’s integrated LNG business logged a jump in its adjusted net operating income to $11.2 billion in due to a high demand in Europe.

TotalEnergies said earlier this month that the quarterly results of its integrated LNG business will be impacted by the lower demand in Europe and lower prices.

The company also took a $4.1 billion hit in its fourth-quarter results for the write-down of its stake in Russian LNG producer Novatek.

Overall, the group reported adjusted net income of $6.5 billion in the first quarter, down by 27 percent year-on-year and a drop of 13 percent when compared to the prior quarter.

Compared to the first quarter in 2022, net income increased 12 percent to $5.6 billion.

“TotalEnergies once again demonstrates its ability to generate strong results, posting in the first quarter 2023 adjusted net income of $6.5 billion, cash flow of $9.6 billion, and return on average capital employed of 25 percent, in an environment of lower oil and gas prices. IFRS net income was $5.6 billion for the quarter,” chief executive Patrick Pouyanne, said.

“Integrated LNG delivered adjusted net operating income and cash flow of $2.1 billion, leveraging its integrated global portfolio, in an environment of European and Asian gas prices returning to levels close to Brent parity at $16-17/Mbtu, given the mild winter and high inventories in Europe,” he said.

LNG sales and production

During the first quarter, TotalEnergies sold 11 million tonnes of LNG, down by 17 percent when compared to the year before and a drop of 13 percent when compared to the prior quarter.

TotalEnergies attributed the drop mainly to lower spot volumes, linked to lower demand for LNG in Europe due to the mild winter weather and high inventories.

However, LNG production, excluding Novatek, rose by 7 percent to 4.4 kboe/d in the first quarter from the same quarter last year due to restart of the Hammerfest LNG terminal in Norway in the second quarter of last year, the firm said.

LNG production, excluding Novatek, rose 4 percent when compared to prior quarter as well.

Freeport LNG restart to boost sales

Given the evolution of oil and gas prices in recent months and the lag effect on price formulas, TotalEnergies expects that its average LNG selling price should be between $10-12/Mbtu in the second quarter of this year.

Also, given the high inventory levels at the end of winter, European and Asian gas prices are expected to remain stable in the second quarter before rebounding in the second half 2023, driven by restocking gas in Europe before winter and the demand recovery in China, in a context of limited LNG production growth, the firm said.

Futures markets anticipate prices in the range of $18/Mbtu for winter 2023-24.

For the second quarter 2023, TotalEnergies expects a hydrocarbon production around 2.5 Mboe/d, LNG sales that should benefit from the restart of Freeport LNG, and a utilization rate in refineries up to more than 80 percent given the end of strikes in France.

The company confirmed its guidance for net investments between $16-18 billion in 2023, including $5 billion in low-carbon energies.

Most Popular

YPF CEO: FID on second Argentina FLNG expected by July

Pan American Energy, Golar LNG, YPF, Pampa Energia, and Harbour Energy plan to take a final investment decision on Argentina's second floating LNG production unit by the end of July, according to YPF CEO Horacio Marin.

Sempra still targets Port Arthur LNG expansion FID in 2025

Sempra Infrastructure, a unit of Sempra, still expects to make a final investment decision on the second phase of its Port Arthur LNG export project in Texas in 2025.

Egypt’s EGAS inks new FSRU charter deal with Hoegh Evi

Norwegian FSRU player Hoegh Evi has signed a new charter deal with Egypt’s EGAS to deploy a converted FSRU in Egypt. Hoegh Evi will convert the LNG carrier Hoegh Gandria to a floating storage and regasification unit.

More News Like This

TotalEnergies targets Mozambique LNG restart by mid-year, CEO says

France's TotalEnergies and its partners in the giant Mozambique LNG project are planning to restart construction on the 12.8 mtpa project by the middle of this year, according to Patrick Pouyanne, CEO of TotalEnergies.

Three Marsa LNG contracts awarded in Oman

Three firms have secured contracts for the TotalEnergies-led Marsa LNG bunkering project worth about $1.6 billion, according to Oman's Sohar Port and Freezone.

TotalEnergies quarterly LNG earnings up, sales down

French energy giant TotalEnergies reported higher LNG earnings and lower sales in the first quarter of 2025.

TotalEnergies inks initial Dominican LNG supply deal

France's TotalEnergies has signed a heads of agreement with ENADOM, the joint venture between AES Dominicana and Energas in the Dominican Republic, to supply liquefied natural gas (LNG) to the latter.